IRS Issues Notice 2024-2 Outlining Guidance On SECURE 2.0 Provisions

The IRS issued Notice 2024-2 (Notice), which provides guidance in a question and answer format concerning certain provisions of the SECURE 2.0 Act of 2022 (SECURE 2.0). The following is a brief overview of key provisions in the Notice, which was issued on Dec. 20, 2023.

Automatic Enrollment/Auto-Escalation Mandates

SECURE 2.0 mandates that for plan years beginning after Dec. 31, 2024, a plan or arrangement with a qualified cash or deferred arrangement (CODA) must include both an automatic enrollment feature and an automatic escalation feature unless it meets an exemption. However, a CODA enacted before Dec. 29, 2022 (the date SECURE 2.0 was adopted), or a CODA in a church plan or governmental plan is generally exempt from the auto-enrollment requirement.